PERSONAL LINES BROKER-AGENT EXAM QUESTIONS
WITH COMPLETE SOLUTION
What do we call the process whereby insurers decide which customer to insure
and what coverage to offer?
Underwriting
The insured can do all of the following by adding an Other Structures-Increased
limits endorsement to the homeowners policy EXCEPT?
Raise the coverage limit on one structure and delete coverage for others.
The National Flood Insurance Program...
May only be written by communities participating in the program.
Internet advertisements made by an agent or broker licensed in CA must provide
all of the following information EXCEPT?
Expiration date of the license
Which item of real property under HO-3 are valued on an actual cash value basis?
Built-in appliances
Why would a boat owner insured with an HO-3 policy want to buy a Boatowners
policy?
All true. To obtain liability, protection from uninsured boaters while out on the water,
increase hull coverage on his boat because the homeowners policy coverage is
extremely limited.
Which causes of loss for provides the broadest coverage?
Special form
The system that makes automobile bodily injury and property damage liability
insurance available to applicants who are unable to obtain coverage...
CAARP
One purpose of California automobile assigned risk plan
To make automobile insurance available to residents of the state
Which of the following losses would be covered under the personal auto policy
other than collision coverage
Someone shoots the rear car window out while the insured's car is parked in the street
overnight
An umbrella policy provides?
Broad excess liability coverage over one or more primary policies
Which of the following major sections of a policy are represented by the letters of
DICE
Declarations, insuring agreement, conditions, exclusions
An intentional omission of a material fact on the part of an insured that entitles
the insurer to rescind the contract is?
Fraudulent concealment
Making an insured whole by restoring them to the same condition as before a
loss is an example of?
The principle of indemnity
, What is the difference between the per accident limit in a split limits policy and
the single limits?
The per accident limit applies to all claims and the single limits applies only to bodily
injuries.
All of the following expenses are covered in addition to the limits of liability under
Coverage A of personal auto policy EXCEPT?
Pre-Judgment interest
As defined in the California Insurance Code, "insurance" is a...
Contract
What perils are included in a standard fire policy
Fire, lighting, and removal
What percent of the homeowners policy coverage A-dwelling limit applies to
coverage b-other structures?
10%
A written provision that modifies the provisions of the original contract is known
as?
An endorsement
Which of the following is a valid reason for an applicant to purchase a
homeowners policy instead of a dwelling policy?
The insured desired broader coverage
The unearned premium returned to the insured when the insurer cancels the
policy is known as
Pro-rata refund
The watercraft endorsement to the homeowners policy extends coverage for?
liability coverage for watercraft listed on schedule
All of the following meet the definition of an insured under the HO-3 policy
EXCEPT?
75 year old grandparent residing in an adult facility
An agent has important ethical responsibilities to...
All of the above. Their insurers, policy owners, and the general public.
Who owns a mutual insurance company?
Policyholders
An insured adds an automobile to her policy. She does not pay the additional
premium when it's due, the insurer cancel the policy in:
10 days
What is one reason an individual may purchase a dwelling policy instead of a
homeowners policy?
The owner does not reside in the dwelling
What are two major coverage is provided section 2 of the H0-3 policy?
Personal liability and medical payment to others
The standard homeowners policy provides replacement cost coverage for which
of the following?
Personal property
California earthquake Authority policies shall be marketed and policyholders
service by?
The California earthquake Authority
WITH COMPLETE SOLUTION
What do we call the process whereby insurers decide which customer to insure
and what coverage to offer?
Underwriting
The insured can do all of the following by adding an Other Structures-Increased
limits endorsement to the homeowners policy EXCEPT?
Raise the coverage limit on one structure and delete coverage for others.
The National Flood Insurance Program...
May only be written by communities participating in the program.
Internet advertisements made by an agent or broker licensed in CA must provide
all of the following information EXCEPT?
Expiration date of the license
Which item of real property under HO-3 are valued on an actual cash value basis?
Built-in appliances
Why would a boat owner insured with an HO-3 policy want to buy a Boatowners
policy?
All true. To obtain liability, protection from uninsured boaters while out on the water,
increase hull coverage on his boat because the homeowners policy coverage is
extremely limited.
Which causes of loss for provides the broadest coverage?
Special form
The system that makes automobile bodily injury and property damage liability
insurance available to applicants who are unable to obtain coverage...
CAARP
One purpose of California automobile assigned risk plan
To make automobile insurance available to residents of the state
Which of the following losses would be covered under the personal auto policy
other than collision coverage
Someone shoots the rear car window out while the insured's car is parked in the street
overnight
An umbrella policy provides?
Broad excess liability coverage over one or more primary policies
Which of the following major sections of a policy are represented by the letters of
DICE
Declarations, insuring agreement, conditions, exclusions
An intentional omission of a material fact on the part of an insured that entitles
the insurer to rescind the contract is?
Fraudulent concealment
Making an insured whole by restoring them to the same condition as before a
loss is an example of?
The principle of indemnity
, What is the difference between the per accident limit in a split limits policy and
the single limits?
The per accident limit applies to all claims and the single limits applies only to bodily
injuries.
All of the following expenses are covered in addition to the limits of liability under
Coverage A of personal auto policy EXCEPT?
Pre-Judgment interest
As defined in the California Insurance Code, "insurance" is a...
Contract
What perils are included in a standard fire policy
Fire, lighting, and removal
What percent of the homeowners policy coverage A-dwelling limit applies to
coverage b-other structures?
10%
A written provision that modifies the provisions of the original contract is known
as?
An endorsement
Which of the following is a valid reason for an applicant to purchase a
homeowners policy instead of a dwelling policy?
The insured desired broader coverage
The unearned premium returned to the insured when the insurer cancels the
policy is known as
Pro-rata refund
The watercraft endorsement to the homeowners policy extends coverage for?
liability coverage for watercraft listed on schedule
All of the following meet the definition of an insured under the HO-3 policy
EXCEPT?
75 year old grandparent residing in an adult facility
An agent has important ethical responsibilities to...
All of the above. Their insurers, policy owners, and the general public.
Who owns a mutual insurance company?
Policyholders
An insured adds an automobile to her policy. She does not pay the additional
premium when it's due, the insurer cancel the policy in:
10 days
What is one reason an individual may purchase a dwelling policy instead of a
homeowners policy?
The owner does not reside in the dwelling
What are two major coverage is provided section 2 of the H0-3 policy?
Personal liability and medical payment to others
The standard homeowners policy provides replacement cost coverage for which
of the following?
Personal property
California earthquake Authority policies shall be marketed and policyholders
service by?
The California earthquake Authority
